Singapore Footwear Analysis

Chapter 2 Market Analysis 2. 1. 1 Footwear Market Size The global pulmonary tuberculosis of footgear showed a steady return between 2004 and 2007 but the global recession caused output playscripts and consumer disbursement across a wide range of products, including footgear, to weaken in 2009. The USA, EU and Russian markets undertake in 2008 after good addition. Whereas the Asian and Brazilian markets continue to grow as a rising figure of low-middle class people replace their flip-flops by closed raiment. A more important driving soak up to the global footgear market is the fast growth of very affluent people in the appear economies buying luxury footwear.In 2008, the global footwear market was estimated at USD 201 million and 7. 3 billion pairs, an iodine-year average growth of 1. 4%, comp ard to USD 190 billion in 2004. The rising takings of workingwomen, the trends towards casual footwear, the change magnitude affluence, and footwear as a fashionable status sy mbol, growing awareness about healthy and supple lifestyle, rising population and disposable income levels, were driving this growth. According to a rising market report produce by Transparency Market Research, the global footwear market was worth USD 185. billion in 2011 and is evaluate to reach USD 211. 5 billion in 2018, growing at a CAGR of 1. 9% from 2011 to 2018. world-wide spending is evaluate to be moderate in 2012, as exertion revenue for the Global Footwear Manufacturing industry increases by 2. 2% in the current year to total USD 122. 9 billion, up from USD 107. 4 billion in 2007. This represents annualized growth of 2. 7% in the past five years. As consumer spending power in the United States, Europe and other parts of the world steadies, learn for basic, non-discretionary footwear will continue to anticipate low.Furthermore, Transparency Market Research also bowd that, in the overall global market, Asia Pacific is evaluate to maintain its lead position in te rms of revenue till 2018. It is expected to hold the largest appoint at 42% with 30. 1% of the global footwear market revenue dish out in 2018 followed by Europe with 21% of market share. 2. 1. 2 Footwear Market Segmentation The footwear market is part into Men, Women and Children. Womens footwear, excluding athletic footwear makes up the industrys largest product segment, with an estimated 26. 3% of industry revenue in 2012.Due to nip and tuck of economic independence and demand, new products are being launched more frequently in the womens footwear segment than the mens and childrens sections. There is a large variety of footwear for women, which are categorized by types and styles. Most types of them are designed for specific activities but, on the other hand, in the aforementi iodined(prenominal) activity, there have many styles in it. For this reason, both of the categories are somewhat overlap. Therefore, in this chapter, womens footwear is categorized into types as follo wed * Athletic home * Boots * Casual shoes * Comfortable shoes Dress shoes * Job-specific shoes * Office and Professional * Sandals * Specialty and Special Needs 2. 1. 3 Footwear Market ontogenesis Rate Pack gray Facts expects the global footwear market to grow at a substantially lazy clip between 2008 and 2013 compared to previous years. The global economic environs will likely put a damper on consumer spending putting pressure on all measures of the footwear including frequency of purchase, building block consumption and pricing. Regionally, markets will be affected to varying degrees and at various points in time as the global economic slump orks its way through international markets. For instance, the Asia-Pacific region may take continuing to slow down and may not be as severe as other regions. Global Footwear Retail Market Forecast, 2008-2013 (in billion $) Source Packaged Facts On a unit volume basis, Packaged Facts expects global unit volume consumption is expected to reach 12. 1 billion pairs in 2013, which is equal to 3% growth thereafter the United States and Europe return to more modest growth rates and emerging economies see consumption rates rise. Global Footwear Retail Unit flashiness Forecast, 2008-2013 (in millions of pairs)Source Packaged Facts As a whole, the footwear Industry is in the mature stage of its life cycle. The number of producers is rising and there is still positive growth in both industry revenue and judge added. However, the barriers to entry are not insurmountable. Since global population continue to increase, World Resource Institute expected world population to rise five-fold in 2050, and footwear is a product required by approximately customers in the world, therefore, a base level of footwear purchases will repeatedly exist. 2. capital of capital of capital of capital of capital of Singapore Market cuss Analysis In this chapter, PEST analysis is used to assess the current in Singapore market. governmental and Legal, Economic, Social and Technological factors are examined and described. Before starting up new line of products in oversea, fixture is one of the important issues, which we have to seriously consider. As the crisis in both the US and Europe are affected the miserliness all around the world, Asia market is still in good condition likewise it is easier for line of business to succeed when operating in a healthy business surround.As for Singapore, The World Bank-International Finance confederacy (IFC) has ranked it as the easiest place in the world to do business and ranks as the worlds top logistic hub. Singapore has stable, diversified, growing and supported by regulatory environment that is transparent and balanced. As a result, Singapore succeeding became one of the worlds most prosperous countries with strong international trading cerebrate and with per capita GDP equal to that of the leading nations of Western Europe. 2. 2. 1 Political and Legal factorsDue to the gov ernment who has set up several organizations in helping the business system, in The 2011 Index of Economic Freedom, Singapore is ranked as the second reconcilest economy in the world. According to the Corruption Perceptions Index, it also shows that Singapore is an enterprise friendly acres as it consistently ranked as one of the least corrupt countries in the world. Moreover, In Singapore, the state has taken on the role of promoter and practitioner of Corporate Social Responsibility, a logical ontogenesis in view of the dominant role of the government in the local anaesthetic economy.The Economic Development control board Act exists to stimulate the growth, expansion and development of Singapores economy. Likewise, the emphasis of the regulatory policy of Singapore Ministry of Finance (MOF), which related with Companies Act, Business Registration Act, Accountant Act and Currency Act, is mainly focusing on development rather than control. These benefits help offering a healthy business environment for both local and foreign invertors. Singapores government also has great influent on business environment by providing well-served air, sea and telecommunications connectivity.One of the most essential connectivity is broadband network, which is sufficient for every business need. Singapore has one the worlds busiest port, with the hub for about 400 shipping lines to more than 700 ports worldwide. Not only seaport facilities, Singapore also has Singapore Changi Airport, which is renowned as worldwide leading air hub for its efficiency and excellent go in cargo handling. The congregation of superior infrastructure and global industry professionals has made Singapore of the opera hat destination of doing business. . 2. 2 Economy factors According to the Ministry of Manpower of Singapore, in the past decade, Singapores economy grew by an average of 5% per annum. Singapores small population and dependence on external markets and suppliers has pushed it towards e conomic passness, free traffic and free markets. This, as well as government policies that patronize economic development, have been bring up success factors in Singapores historically strong economic performance. Singapore has a highly developed market-based economy.It is open and has corruption-free environment, stable prices, and a per capita GDP higher than that of most developed countries. Singaporean economy depends heavily on exports, information technology products, pharmaceuticals, and on a growing financial services sector. Real GDP growth averaged 5. 9% between 2007 and 2011. According to a report published by the World Bank, Singapores Gross Domestic Product was USD 239. 70 billion in 2011, about 0. 39 % of the world economy. Singapore GDP Source www. tradingeconomics. om / World Bank Singapore is also known for low tax regime. The face-to-face income tax rates start from 0% and are capped at 20% for residents while non-residents are taxed at a flat rate of 15%. The corporate income tax rate in Singapore is approximately 8. 5% for profit up to SGD 300,000 and a flat 17% above SGD 300,000. The GST or bath rate is 7%. Moreover, there is no dividend tax, no estate duty, and no capital gains tax. The economy contracted 1. 0% in 2009 as a result of the global financial crisis, but rebounded in 2011.Over the overnight term, the government hopes to establish a new growth path that focuses on raising productivity. Singapore has attracted major investments in pharmaceuticals and medical technology labor and will continue efforts to establish Singapore as southeastward Asias financial and high-tech hub. Share of GDP by industry Source Department of Statistics Singapore As from the graphs above, even vary along with global economic situation, Singapores economy is considered as one of a great place to invest with strong emerging economy in every business sectors. . 2. 3 Social factors According to Department of Statistics of Singapore, the total popu lation was 5. 31 million as at end-June 2012. There were 3. 82 million Singapore residents, comprising 3. 29 million Singapore citizens and 0. 53 million long-lasting residents, and 1. 49 million non-residents. Female residents outnumbered their male counterparts in Singapore further. The sex ratio was 970 males per 1,000 females in 2012. Chinese formed the majority at 74 % of the resident population, followed by the Malays with 13 % and the Indians with 9. %. The proportion of Singapore residents aged 65 years and over blush wine from 9. 3 % in 2011 to 9. 9% in 2012. Sex small-arm of resident Population Source Source Manpower Research and Statistics Department, Ministry of Manpower, Singapore Age Distribution of Resident Population Source Source Manpower Research and Statistics Department, Ministry of Manpower, Singapore Singapore Residents by Age Group, heathenish Group and Sex, June 2012 Source Source Manpower Research and Statistics Department, Ministry of Manpower, Singapo reSingapore Manpower Research and Statistics Department also tell that Singapore Nominal incomes move up strongly in 2011, amid a tighter labour market with more residents employ in both professional, managerial, executive technician (PMET) and non-PMET jobs in 2011. The median monthly income from work of full-time employed residents rose by 8. 3% over the year to USD 3,249 in 2011, Taking headline inflation into account, the median income rose in real terms by 3. 1% in 2011. Distribution of Resident Labour contract by Age, 2001 and 2011 (As at June)Source Manpower Research and Statistics Department, Ministry of Manpower, Singapore 2. 2. 4 Technology factors As Singapore performance into globalization and networked economies where competition and collaboration are in the same page, the presence of a strong technical infrastructure is crucial and unavoidable. The changes of technology are not only refer to the changes in production techniques, production equipment and communica tion, it also leads to approach of production and services as well. Besides, it helps speeding up the movement of the information including improvement of the analysis information.Singapores extensive infrastructure set up is one of a fundamental attracter for foreign investment. According to the 2010 Infocomm Usage by Households and Individuals Survey, Singapore has put in place an advanced and dependable Infocomm infrastructure that has met the needs and demands of the economy and society. The proportion of resident households with Internet and broadband access at property reached 82%. The National Infocomm Infrastructure (NII) started as a key initiative of the IT 2000 Master Plan, with the building of a high-speed nationwide broadband network as a major milestone in its development.Again, Singapore has also grown to be one of the major global telecommunications hubs in the region and is well positioned as a hub for international capacity. Over the last few years, Singapore h as also grown to be a trans-cable hub where regional submarine cable systems and international cable systems interconnect. In addition, Singapore government also emphasizes on its strength and makes the most of its electronic performances by providing useful resources and information online.For example, the Custom Office of Singapore provides e-service proceedings through its website in order to facilitate all investors and remain as a global trade hub trusted by foreign trading partners and business operating in Singapore. 2. 2. 5 Conclusion From the factors study above, it can be concluded that Singapore government has play an important role on its business success both domestic and international. With governments policies, it has created an enterprise-friendly environment for invertors worldwide.Singapore extensive connectivity, together with a pro-business environment and legal and regulatory framework, make it an ideal circumstance for doing business. 3. Market trend Howard D avis, a professor of footwear design at Parsons School of Design, told Footwear News in 2005, Self-adjusting shoes will be shoes of the future because the consumer will demand real and serious comfort. Not only comfort, the industrys demand is primarily driven by fashion and demography. Newcomers with more fashionable product may thrive at the expense of a fading rival.The profitability of individual companies depends on their ability to design attractive footwear lines and remain at the forefront of consumers consciousness. Consequently, designers attempt to combine comfort and style by using new technologies, with predictions that customized fit could be soon become more popular and more widely available. As for Siamese footwear trend through the world financial crisis, the Department of Export Promotion has assessed the impact and suggested that Siamese firms has to seek for new market replacement in order to gain and maintain market share apart from European and US market tha t are in their downturn.Other than maintaining the share, Thai firms have to be watchful to reap the opportunities from new impact of economy under the Asian Economic Community (AEC) in 2015. 4. winder Success Factors In order for March Shoes to accomplish its marketing objectives, the key success factors are the elements that are highly necessary. There are a few factors include * Access to distribution take * Access to targeted market * Understand actual customer behavior The key success factors might be changed from time to time, the company must continue to plan ahead beyond present needs, and keep rate with rapid technological changes.